Interest u/s 201(1a) of the income tax act
This query is : Resolved
Kamaldeep Singh
(Querist)
05 July 2013
Hi,
My client didn't deduct TDS on a payment made to a contractor which was made on 25th April-2013. Now he has deducted TDS on 4th july-2013.
I have the following questions in my mind:
1) Interest on TDS not deducted is 1% per month or part thereof from the date when TDS was deductible till date of actual deduction.If he made deduction on 4th Jul-13 for how many months he is liable to pay interest. I mean is he liable for 4 months i.e.April to Jul or we have to go on date to date basis i.e. from 25th April to 4th July which gives us 3 months?
2) Is he liable to Intt. of 1.5% also from Jul to Aug. Actually I am confused with this point of section. If after deduction on 4th Jul-13 he pays the interest before 7nth of aug next month then also he is liable for interest of 1.5% for 2 months on late payment?
Kindly guide me in the above situation.
Thanks.
My client didn't deduct TDS on a payment made to a contractor which was made on 25th April-2013. Now he has deducted TDS on 4th july-2013.
I have the following questions in my mind:
1) Interest on TDS not deducted is 1% per month or part thereof from the date when TDS was deductible till date of actual deduction.If he made deduction on 4th Jul-13 for how many months he is liable to pay interest. I mean is he liable for 4 months i.e.April to Jul or we have to go on date to date basis i.e. from 25th April to 4th July which gives us 3 months?
2) Is he liable to Intt. of 1.5% also from Jul to Aug. Actually I am confused with this point of section. If after deduction on 4th Jul-13 he pays the interest before 7nth of aug next month then also he is liable for interest of 1.5% for 2 months on late payment?
Kindly guide me in the above situation.
Thanks.
CA PARAS BAFNA
(Expert)
05 July 2013
Your all statements are true.
.
1. 4 months interest @ 1%
2. 2 months interest @ 1.5%
.
.
1. 4 months interest @ 1%
2. 2 months interest @ 1.5%
.
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